Market volatility is reminiscent of the 1987 crash: Veteran trader Art Cashin
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Source: CNBC via MSN
"It's a good deal more volatile than almost anything else you've seen," said Cashin, who began his career at Thomson McKinnon in 1959. "It is unfortunately reminiscent of some of the volatility we saw in '87," he said Thursday on CNBC's "."
Cashin, now one of six executive floor governors at the , was referring to the market that began on Oct. 19, 1987, in Asia before spreading to Europe and then the United States later in the day. The fell more than 500 points — or 22 percent — in a single day. The volatility moved across time zones the following morning, crashing markets in Australia and New Zealand.
Veteran traders were reminded of the events, dubbed "Black Monday" and "Black Tuesday," this week.
Read more: https://www.msn.com/en-us/money/markets/market-volatility-is-reminiscent-of-the-1987-crash-veteran-trader-art-cashin/ar-AAvwGGD?li=BBnbfcN
I hope this is not going to happen. It does appear that we are on a carnival ride going to fast, without brakes and headed for a jump off the tracks.
= new reply since forum marked as read
Technically it won't - at least in a single day. Because of what happened in 1987 with the (then "newish"
programmed trading, certain indexes (e.g., NYSE) implemented "circuit breakers" to limit drops to I think initially 10% before halting trading on that stock. The SEC set certain thresholds since that time.
This doesn't mean that a similar 22% (or far higher) drop can't happen (we saw it with the 2007 drop from a ~14,000 high in October 2007 to an eventual ~6000 low in March 2009), but it would happen over time.
